Increasing the effectiveness of the Philippines offshoring opportunity evaluation
Offshoring parts of a business is a highly effective cost reduction strategy. There are numerous other benefits. To fully realise all benefits, the offshoring opportunity evaluation needs to be realistic and thorough.
To complete a highly effective offshoring business opportunity evaluation, a key pre-component is the need to determine the business critical factors.
This work is completed during the initial stage of the offshoring opportunity evaluation and, as a minimum, will typically cover the following:
1. Current and future projected production volumes
The ability of the offshoring entity to achieve current and future projected volumes. Barriers to achieving volumes need to be identified and workarounds developed and evaluated.
2. Quality assurance
One of the most significant key success indicators is the ability to ensure actual quality standards are aligned with required. Therefore, being able to accurately define and being able to communicate those standards to the offshored entity will be critical to the success of the offshoring venture. Factors that need to taken into account include attributes of the manufacturing facilities, specifications of acceptable raw materials and durability of used components.
3. Change opportunities
Operating in an offshored location will present opportunities to streamline processes and utilise local components. For example, offshoring manufacturing may allow the utilisation of a locally available materials which are lower cost but behave the same as currently used components. Therefore, flexibility for change needs to be considered as part of the total opportunity evaluation process.
4. Market intelligence
Key trends, regulations and business practices need to be identified and considered when assessing an offshoring option. In some countries, certain regulations apply to foreign owned companies but not to local companies. These sorts of issues need to be identified and considered.
To identify offshoring business critical factors, information should be acquired from all functions of the organisation prior to the offshoring evaluation beginning. Information retrieved will ensure that the interests of the whole organisation are included and a highly effective offshoring opportunity evaluation is developed.
Philippines Business Tours www.philippinesbusinesstours.com are experts in working with overseas organisations to develop and complete Philippines offshoring opportunity evaluations. The collection of relevant data is critical to developing the Philippines offshoring opportunity business case. Philippines Business Tours offer fully customised business tours of the Philippines to ensure a fully informed decision.